Posts Tagged as Real Estate 2016

Important Trends to Keep You In The Know

The Realistic Asking Price: Talking Sellers Down from a High Horse

All sellers want to eke every possible dollar out of the sales price of their home, prompting many to overprice in their initial sales attempt. Without the right real estate selling tips, this could turn out to be a painful lesson. Do you have the skills necessary to talk sellers down from their high horse and ensure a safe dismount into reality?

Help sellers understand why higher is not better
They don’t have the intricate understanding of buyer psychology that you do, and may overlook essential issues with their high-handed pricing strategy – such as the fact that buyers always want the best deal, and often walk away from higher-priced homes eager to snag those of better value nearby – even when a higher-priced home is far preferred.

Why shouldn’t sellers “test the market”?

  • Wasting precious time.
    The first 30 days are when new listings see the most action –overpriced homes skip this honeymoon period. Your best chance for multiple offers and a fast turnaround is to list right.
  • The “drive-by”.
    Today’s buyers are smart, and won’t even kick the tires of overpriced homes – even if the home comes up within their price-search parameters.
  • Helping the neighbors.
    Buyers perusing overpriced homes often flock to other homes in the neighborhood with lower-priced listings.
  • Buyer stress.
    Higher prices don’t leave more room for negotiation, they stress buyers out, who typically do not enjoy this process and are eager to take advantage of competitively priced homes versus the stress of constant haggling over their largest investment. And if your home is overlooked because of price? No negotiations.
  • Two words:
    Appraisal value.
  • Forced price reductions.
    After the home is stale and no one bothers to look at it any more, forced price reductions earn less than a realistic price would have anyways.

Do you have the real estate selling tips you need to help homes shine? Properties Online can help. Contact us today.

Promote Yourself by Video to Increase Exposure and Sales

Will Opendoor Revolutionize Real Estate Buying?

A new, Phoenix-based real estate tech start-up is making its mark in real estate trends for 2016. Making “instant offers,” Opendoor is snapping up homes in a matter of days, then turning around to flip the properties for profit.

How does it work?
Opendoor touts its simplification of the home selling process, leaving behind the repeated cleanings, showings, and strangers traipsing through your home with a typical sale. But their biggest advantage is time savings. Fill out a fast, free survey listing the unique facets of your home, and Opendoor will send you a competitive offer based on this and a comparative market analysis. If you accept, they confirm with a free home inspection, then you choose your move-out date, anywhere from 3-60 days following contract. Opendoor even arranges escrow.

What do customers think?
Opendoor’s website is packed with positive customer reviews, including an AAA “A-rating” and an impressive 4.1 of 5 stars in Google reviews.

Is it making any money?
According to Wall Street Journal, the company made $80 million in October in a third funding round led by Access Industries owner and billionaire Len Blavatnik. Valued by the investor at roughly $580 million, as of mid-December, Opendoor had purchased and sold more than 200 homes at an estimated profit of between $10,000-15,000 per home. This includes the approximately 9% in fees earned from sellers, less the costs of reselling the home.

Where is it opening its doors to home sellers?
After a successful launch in Phoenix, Opendoor is now live in its second market: Dallas, with plans to expand as its funds allow. Will the company move beyond real estate trends for 2016 in their quest to take-on additional markets? Only time will tell.

Don’t let real estate trends for 2016 take you by surprise. Prepare yourself with the help of Properties Online. Contact us today.

Video Usage in Real Estate, the Stats Are In

Ten Emerging Trends in Residential Real Estate

Times are always changing, and that seems to be particularly true for real estate trends these days. What upcoming summer trends do you need to know about in today’s hot housing market?

1. Rising prices.
Home affordability is on the decline as prices continue to rise faster than wages. The average buyer now invests over 30% in mortgage payments. High rental rates keep the market attractive, however, with most buyers saving money over renting in as little as 2 years.

2. Leveling markets.
The country’s hottest markets (San Francisco, Boston) are leveling off, with growth returning to normal.

3. Tight inventory.
New home builders continue to struggle to meet demands in their recovery. Inventory, particularly for starter homes, will remain tight, with fewer distressed properties for sale.

4. Rapid sales.
One-third of properties disappear within 30 days of listing, with 62% facing bidding wars.

5. Mortgage accessibility.
Relaxed guidelines for borrowers are allowing for more purchases, with 3/4 of loan apps closing, compared to just 2/3 last year.

6. Rising rates.
Rising rates aren’t chasing away buyers, who still feel pressed to take advantage of near-historic lows.

7. Disappearing cash.
Cash purchases, making up nearly 47% of the market in 2011 and 33% just last year, are projected to decline to their historic average, 25%, by the middle of next year.

8. Mom-and-pop investors.
Gone are yesteryear’s institutional investors. Now mom-and-pop investors are entering the investment market, taking advantage of the current real estate trend of ditching stocks in favor of the landlord/vacation rental game.

9. Trendy townhouses.
High-density “urban villages,” comprising 12% of new construction, are favored by first-time buyers and Boomers looking to downsize.

10. Return to the ‘burbs.
Urban homes have risen so quickly, more than half of buyers are looking to the suburbs for opportunities.

Don’t fall behind the times. Stay up on the latest real estate trends with the help of Properties Online today.

Two happy young beautiful women

What’s Up for Real Estate in 2016?

Two happy young beautiful women
Millennials Are Looking to Buy

Buying selling, or renting, the Fed’s anticipated rise in interest rates is expected to impact all sorts of real estate trends. What’s that going to mean for your business?

  • Stagnant home prices.
    As interest rates go up alongside minor wage increases, the rising cost of credit could result in a surge of unaffordable markets and possible stagnation in home price appreciation as monthly mortgage costs put added strain on the pocketbooks of buyers. The toll? Housing price increases of 3% in 2016 versus the 6% national rise seen this year. How high will rates climb? A predicted 4.65% on 30 year rates, up 0.77% from the current rate, according to Realtor.com.
  • Millennial interest will continue to increase.
    Not a huge upsurge – merely incremental, as in recent years. Muddying the waters: Rising home prices and rents alongside the mixed millennial bag of saving for a nest egg at mom and dad’s whilst paying down student loan debt, working jobs with stagnant wages and waiting out boomers for promotions.
  • Fewer houses for buyers.
    The housing market’s recovery has been a double-edged sword for those looking to step-up, leaving entry-level houses hard to come by. If interest rates rise, the effect will worsen: People won’t want to trade-in a lower mortgage rate for a higher one, and may opt to re-invest equity into their existing homes. Compounding the issue: 15% – 7.9 million borrowers – whose home values are still underwater.
  • New mortgage loan products.
    Though mortgage originations are still expected to rise, a real need for new loan products is emerging – loans that don’t require large down payments or years of mortgage insurance premiums, and others that would allow for the extraction of equity from homes.

As real estate trends shift, you need to know. Trust in Properties Online to keep you on the leading edge of the industry. Learn more.